When company insiders - a group that includes executives, directors, and major shareholders - purchase their company's stock, it's often viewed as a positive sign for the stock's future performance. This is because insiders are generally assumed to have a deeper understanding of the company's inner workings and strategic plans compared to the general public.
Information about insider buying and selling activity can be found via publicly available Form 4 filings. Typically, larger transactions made by top executives carry more weight - and insider stock purchases tend to be more revealing, from a sentiment perspective, than sales.
